Option update 5-10-07: JBLU not reflecting speculation

Posted May 10th 2007 12:20PM by Paul Foster
Filed under: Intel (INTC), General Motors (GM), Whole Foods Market (WFMI), Electronic Data Systems (EDS), Options, JetBlue Airways (JBLU)

JetBlue Airways (NASDAQ: JBLU) -- option prices not reflecting takeover Speculation. JBLU is recently up $0.54 to $10.89 on unconfirmed takeover speculation. JBLU named Dave Barger President & CEO officer this morning; founder David Neeleman will continue to serve as Chairman. JBLU June option implied volatility of 42 is near its 26-week average according to Track Data, suggesting larger price risks.

Electronic Data Systems (NYSE: EDS) -- implied volatility stays Elevated after EPS; suggests risk. EDS is recently trading at $28.07. EDS reported 1st quarter revenue of $5.2 billion on 5/3. EDS June 30 calls have traded 40 times on transaction volume of 1,858 contracts. EDS June 30 calls are bid 45 cents above its theoretical value of 25 cents. EDS June option implied volatility of 28 is above its 26-week average of 23 according to Track Data, suggesting larger near-term risk.

Option volume leaders today are: Dendreon Corp. (NASDAQ: DNDN), General Motors (NYSE: GM), Whole Foods Market (NADSAQ: WFMI) and Intel Corp. (NASDAQ: INTC).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Tags: EDS, Electronic Data Sys, ElectronicDataSys, GM, INTC, JBLU, JetBlue Airways, JetblueAirways, option implied volatility, OptionImpliedVolatility, Paul Foster, PaulFoster, Stock Options Specialist, StockOptionsSpecialist, theoretical value, TheoreticalValue, WFMI